Events:
The company released its semi-annual report for 2021 on August 23, 2021: the operating income in the first half of the year was 226 million yuan, an increase of 100.17% over the same period last year; the net profit was 108 million yuan, up 89.85% from the same period last year; the net profit after deducting 106 million yuan was 106 million yuan, up 103.67% from the same period last year; and the weighted average return on net assets was 10.65%, an increase of 4.12pct over the same period last year.
Comments:
Business orders have gradually increased, and the scale of revenue and profitability have increased significantly. In the first half of 2020, the relevant military model products that the company participated in gradually mass production, orders continued to grow, while the production capacity of related processes was released one after another, and the operating income and net profit after deducting non-return were both increased by more than 100% compared with the same period last year. The company is a leader in the domestic aerospace manufacturing industry and is expected to be the first to benefit from the rapid growth of demand for China's aviation equipment products in the military and civil fields.
Covering the whole process of "NC precision machining-special process processing-assembly of components", leading the industry in technology and production level. In terms of CNC precision machining, the company focuses on improving the core competence of key, important and complex parts of aviation parts, and leads the industry in high-precision blind hole machining and complex deep cavity processing of materials such as titanium alloy, high-strength steel, nickel-based superalloy, etc.; in terms of special processes, the company gradually releases the production capacity of various production lines and runs through the whole process of aviation parts. In terms of component assembly, the company focuses on cultivating the assembly capability of large components, has passed the examination of assembly qualification of military aircraft, obtained the approval of assembly qualification of French Saifeng landing gear assembly, and actively promotes the construction of the whole process management capacity of component assembly.
Promote the construction and implementation of investment projects and promote the strategic layout of the company's industry. The company has purchased about 100 mu of development land in Chengdu High-tech West Zone to build an intelligent manufacturing and system integration center project for aviation parts.
In June 2021, the company announced that it planned to raise no more than 500 million yuan for the "Aviation parts Intelligent Manufacturing Center" and supplementary liquidity. It is estimated that after reaching production, the annual production capacity of aircraft parts will be 150000 pieces (sets), sales income 234 million yuan and net profit 60.0212 million yuan.
Investment suggestion: we forecast that the operating income of the company from 2021 to 2023 will be 5083x1098 million yuan respectively, and the net profit returned to the parent will be 258100,000,000 yuan respectively, and the corresponding EPS will be 1.06151x2.24 yuan, corresponding to PE51.05/35.61/24.02X. Considering the company's active layout in the field of intelligent manufacturing, considering the good prospect of assembly business of the department's components, we will give the company 60 times PE in 2021. Maintain the "buy" rating corresponding to the target price of 2021 yuan.
Risk hint: project construction and order growth is not as expected, profit and valuation judgment is not as expected.